Bitcoin ‘Severely Undervalued’ vs Gold, Says Lightspark CEO as Tokenized Gold Hits $3B

Lightspark CEO David Marcus claimed that Bitcoin remains “severely undervalued” compared to gold, suggesting the cryptocurrency could reach $1.3 million if it matched gold’s market capitalization.

“I still feel Bitcoin is severely undervalued, especially if you compare it to gold,” Marcus said during a Monday interview with Bloomberg, adding that Bitcoin would trade at $1.3 million per coin at gold parity.

The statement came as Bitcoin touched a fresh all-time high above $126,000 on October 7, while tokenized gold assets simultaneously crossed the $3 billion market cap threshold for the first time.

Marcus, who previously led Meta’s failed Libra cryptocurrency project, argued that Bitcoin’s utility as a neutral settlement asset for global payments has not been priced into current valuations.

Former Meta Executive Sees Bitcoin as Internet of Money

The Lightspark founder emphasized Bitcoin’s role as foundational infrastructure during the interview, comparing it to the internet’s architecture.

“Bitcoin is the internet of money,” Marcus stated, explaining that his company bought Bitcoin three years ago to facilitate transactions and support stablecoins on the network.

Marcus acknowledged the improved regulatory conditions under the Trump administration compared to previous years, when roadblocks had stifled innovation across the crypto industry.

He noted that major financial institutions are now embracing Bitcoin through exchange-traded funds, which could be seen as the beginning of an irreversible shift towards mainstream adoption.

“The horse has left the barn,” Marcus said, describing Bitcoin as the most accepted and trusted digital asset globally.

His firm entered Bitcoin during the previous bear market, giving Lightspark an advantageous cost basis as the asset climbed nearly 100% over the past year.

Lightspark specializes in building technologies on Bitcoin’s Lightning Network, allowing faster and cheaper cross-border payments compared to traditional alternatives.

Marcus described his company’s work facilitating peso transfers to Mexico 24/7 at a cost below conventional remittance services as an example of Bitcoin’s practical applications.

Tokenized Gold Surges Alongside Physical Metal’s Record Run

The tokenized gold market reached $3.03 billion in capitalization on Tuesday as physical gold briefly topped $4,000 per ounce for the first time ever.

PAX Gold and Tether Gold dominate the sector, with each token trading just below $4,000 and closely tracking spot gold prices.

Trading volume for gold-backed tokens spiked to $640 million over 24 hours as the precious metal rallied alongside silver, which jumped past $48.50.

The surge occurred during the sixth day of the U.S. government shutdown, which contributed to renewed investor interest in traditional safe havens.

Bitcoin’s current price represents a ratio of roughly 31.6 ounces of gold per coin, down from a peak of over 40 ounces in December 2024.

The declining ratio suggests gold has outperformed Bitcoin in recent months despite the cryptocurrency’s 30% year-to-date gain.

Institutional Analysis Supports Undervaluation Thesis

VanEck’s Matthew Sigel separately argued on Tuesday that Bitcoin could reach $644,000 per coin if it captured half of gold’s store-of-value market at current prices.

“Surveys show younger consumers in emerging markets increasingly prefer Bitcoin,” Sigel wrote on X, noting that roughly half of gold’s market value stems from its store-of-value role rather than industrial or jewelry demand.

VanEck’s broader research projects that Bitcoin could settle 10% of global trade by 2050, potentially supporting a long-term price of $2.9 million per coin.

The research also estimates that central banks would hold approximately 2.5% of their reserves in Bitcoin under such a scenario.

Deutsche Bank analysts predicted in September that Bitcoin could join gold on central bank balance sheets by 2030, citing the Trump administration’s strategic Bitcoin reserve initiative.

The growing Bitcoin edge over gold for institutional investors comes as spot Bitcoin ETFs attracted $3.24 billion in net inflows last week, their second-highest tally since launch.

Centralized exchanges now hold just 2.83 million Bitcoin, the lowest level in six years, intensifying supply constraints as demand accelerates.

The Bitcoin-to-gold comparison has sharpened this year as both assets set records amid mounting concerns over currency debasement and fiscal uncertainty in major economies.

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